Anyone got a self certified mortgage?

[SpringChicken]

DP and I are hoping that our next mortgage can be self certified as we have a reasonable chunk to put down as a deposit - is this what self certification is?

Also DP is self employed - will that go against us?

TIA x

I think self-cert mortgages are those where you don't provide proof of earnings - usually for self employed people.

We self-certified - it means you have a big enough deposit that the bank know you are a good risk - ie, if you don't pay your mortgage you stand to lose your own money if you get repossessed. I would suggest you get independent financial advice from at least two people.

Thanks guys - think i understand it vaguely but like to know exactly what i am getting into in these situations.

we did self-cert mortgage buying the house we are in now as DH had just had a newjob offer, and otherwise we wouldn't get a mortgage until he had done 3 months, and the multiples didn't work on my mortgage (we were in rented before that and I was 6 month pg). we also had a big deposit to put down. Don't think your DP being self-employed would matter or go against on a 'normal' mortgage.

We have a self cert mortgage as well but only wanted to borrow 40% ltv. It's just you telling them what you're earning but they don't need to see proof of income. Great if your dh hasn't got sufficient accounts. My dh was self employed at the time which is why we chose a self cert.

We did self certification with both our mortgages. As long as you are putting 20% down or more, they will generally let you do it. Make sure you have a good mortgage broker to tell you how to fill in the forms so that they say what the lenders want to hear. We had plenty of income but most of it was either from my dh's self employment and my usa investments. If you are in london I can recommend and really great mortgage broker in West London.

Thanks Sofia but i'm in Luton - Estate Agent has just finished and our house is officially up for sale - YIPEEEEE

As I understand it, self certification is for people who can't (or don't want to) prove their earnings, so can't borrow the amount they want thru normal mortgages.

It may be because one partner is self employed with less than 3 years income history, or with a very variable history of good and bad years trading. Or maybe your employer won't give you a reference, or maybe you are working on a short fixed-term contract.

The amount of deposit you put down shouldn't indicate that you need a self cert. mortgage. I would have thought that any high-street building society will happily give mortgages for lower percentages of equity.

Watch it tho'. You will generally find that self-cert mortgages have higher interest rates than general ones, you don't tend to get the discount offers, and you may have early redemption penalties.

I used to have one when I was self-employed and my earnings fluctuated. I put down 30% for my mortgage.